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Subjects · Leaving Cert Accounting

Leaving Cert Accounting: Ratios — investment

How often Ratios — investment comes up on the Accounting papers, every year it was asked, and questions to try.

HL Asked on 10 of the last 10 Higher Level papers, most recently in 2026. banker

Ratios — investment, Higher Level(6 marks)

Quick ones on Ratios — investment.

(a)The price-earnings ratio is…
  1. Earnings per share ÷ market price per share
  2. Market price per share ÷ earnings per share
  3. Dividend per share ÷ market price per share
(b)The dividend yield is…
  1. Market price per share ÷ dividend per share
  2. Earnings per share ÷ market price per share × 100
  3. Dividend per share ÷ market price per share × 100
(c)EPS 25c; market price €2.50. P/E ratio?
  1. 10 times
  2. 100 times
  3. 6.25 times
Show the answers

(a) Market price per share ÷ earnings per share

(b) Dividend per share ÷ market price per share × 100

(c) 10 times

Your turn: Higher Level questions on Ratios — investment.

Higher Level

Asked on 10 of the last 10 Higher Level papers, most recently in 2026. banker

Every paper, year by year

YearWhere it came up
2026Q5
2025Q5
2024Q5
2023Q5
2022Q5
2021Q5
2019Q5
2018Q5
2017Q5
2016Q5

Links open the State Examinations Commission’s paper for that year.

More Ratios — investment questions

Ratios — investment, 2 marks

Earnings per share is…

  1. Ordinary dividends paid ÷ number of ordinary shares in issue
  2. Market price per share ÷ dividend per share paid
  3. Profit after tax and preference dividend ÷ number of ordinary shares
Show the answer

Profit after tax and preference dividend ÷ number of ordinary shares

E.g. (€200,000 − €20,000 preference dividend) ÷ 900,000 shares = 20c per share. Only profit available to ordinary shareholders counts.

Ratios — investment, 2 marks

Dividend cover is…

  1. Dividend per share ÷ market price per share × 100
  2. Profit available for ordinary shareholders ÷ ordinary dividends
  3. Ordinary dividends ÷ profit available for ordinary shareholders
Show the answer

Profit available for ordinary shareholders ÷ ordinary dividends

E.g. €180,000 ÷ €60,000 = 3 times. It shows how safe the dividend is: higher cover means more profit is retained.

Other Accounting topics

All of Leaving Cert Accounting